Jim Cramer Thinks AI Revolution Can Boost These 5 Stocks

4. Vertiv Holdings Co (NYSE:VRT)

Number of Hedge Fund Investors: 75

Jim Cramer believes the ongoing AI and data structure revolution can boost Vertiv, the Ohio-based company that makes power management and cooling solutions for computing and data centers. Over the past one year Vertiv shares have gained an eye-popping 465%. Cramer said that had Vertiv been a part of the S&P 500, it would have been the index’s best performer.

As of the end of the fourth quarter of 2023, 75 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Vertiv, up from 66 funds in the previous quarter.

Baron Small Cap Fund stated the following regarding Vertiv Holdings Co (NYSE:VRT) in its fourth quarter 2023 investor letter:

“Vertiv Holdings Co (NYSE:VRT), a manufacturer of critical infrastructure equipment for data centers, continued its ascent, up 29% for the quarter. The company is benefiting from a robust demand environment as well as successful implementation of its strategy to improve margins. As one of the leading providers of precision cooling for data centers, Vertiv stands to benefit from the increasing adoption of artificial intelligence (AI), as AI-related servers have higher energy density, which will necessitate more complicated cooling solutions. During the quarter, Vertiv held its first Analyst Day, where it introduced long-term growth targets for revenue growth of 8% to 11% CAGR out to 2028 and 500 bps of margin expansion to 20% adjusted EBIT margins and $3 billion of share repurchases over that same time frame. We trimmed the position into strength, but we remain significant shareholders as we see substantial upside over the long term, as the company executes its strategy in a strong industry backdrop.”